VFD Group Price Drops by 80% after Bonus Issue

VFD Group Price Drops by 80% after Bonus Issue

VFD Group Plc market price declined by 80% to N40.60 as bonus shares raised the investment firm’s shares outstanding on the Nigerian Exchange last week.

The huge correction followed the group 1 for 4 bonus shares allotted shareholders, though VFD has not issued official statement to this effect. 

After reviewing the group previous notice on the Nigerian Exchange, MarketForces Africa observed that the market corrected unit price of VFD Group a day after its bonus share qualification date. 

Data from the Nigerian Exchange showed that VFD group share price nosedived by 80% same day from N202.90 to N40.60 – which analysts considered a breach of NGX rule in the absence of additional information.

Analysts observed that the investment group market value was not significantly affected while its outstanding shares on the Nigerian bourse rose from 190.027 million to 1,266 billion in the stock market.

“This 80% daily decline in market price contradicts the stock market 10% allowable share price movement cap, suggesting that the company has effected its bonus share dividend to shareholders”, a slew of stockbrokers told MarketForces Africa.

Confirming this, the Nigerian Exchange has also corrected the investment group 52-week high price to N53.86, data obtained from the local bourse showed.

At the current price, VFD group is 25% behind its adjusted 52-week high. This is lowest market price since it began trading on the 6th of October 2023.

The self-acclaimed industry-agnostic proprietary investment company said it has a portfolio of over 40 businesses across various sectors and geographies, creating innovative products and solutions for the African market, since 2009. #VFD Group Price Drops by 80% after Bonus Issue

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